Strong pound tests King’s recovery mantra

27-Apr (The Financial Times) — In the week when the UK entered a double-dip recession, there is some irony in the fact that the pound has hit its highest level since August 2009 – a development that flies in the face of the government’s attempts to rebalance the economy.

If there has been any theme central to economic recovery in Britain, it has been the role that a weaker currency would play in fixing an economy that has become increasingly out of kilter.

…A weaker pound – engineered in part by near-zero interest rates and monetary stimulus in the form of quantitative easing – has been central to the recovery theme since the crisis began.